INSUBCONTINENT EXCLUSIVE:
By Chandan TapariaDespite negative global cues on Thursday, NSE Nifty opened with marginal gains, but failed to capitalise on the gapup
opening, as it witnessed selling pressure in the later half of the day.
The index made lower high and lower low and formed a red body candle
However, the overall chart structure is still bullish and till Nifty holds above 11,850, we maintain a positive stance on the market for a
target of 12,050 and 12,103 levels.
On the flipside, immediate support is placed at 11,920, 11,850 and 11,780 levels.
On the monthly options
front, Maximum Put open interest (OI) was at 11,900 followed by 11,800 strike, while maximum Call OI was at 12,000 followed by 12,200 strike
We have seen some Put writing at 12,000 and 11,900 strike, while Call writing was visible in 12,000-12,200 zone
Option data suggests a broader trading range between 11,800 and 12,200 levels.
India VIX fell 1.22 per cent to 14.97 level
Now it needs to continue to hold below 15 to surpass the recent highs.
Bank Nifty continued to hold above 31,200 for a second consecutive
session and formed a small red bodied candle on the daily scale
The index made higher lows for a fifth consecutive session and ended on a flat note
Till it holds above 31,200, we may see extension in ongoing optimism towards 31,500 and then 31,750
On the downside, supports are placed at 31,000 and then 30,800.
Nifty futures closed fell 0.39 per cent to 11,971
Builtup of long positions were seen in Zee Entertainment, Indiabulls Housing Finance, Bosch, Cadila Healthcare and L-T, while shorts were
seen in Vodafone Idea, Sun TV, Auro Pharma, Bata India and SAIL.
(Chandan Taparia is Technical - Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)